What are Debt Consolidation Mortgage Providers?

Debt consolidation mortgage providers are lenders who allow you to remortgage your property to release equity for paying off existing debts like credit cards, loans, and car finance. By consolidating debts into your mortgage, you typically get a lower interest rate but pay over a longer term.

Can I remortgage with bad credit?

Learn more about can i remortgage with bad credit in our detailed guide.

What is equity release?

Learn more about what is equity release in our detailed guide.

How does remortgaging work?

Learn more about how does remortgaging work in our detailed guide.

Can I get a mortgage with CCJs?

Learn more about can i get a mortgage with ccjs in our detailed guide.

Is it a good idea to consolidate debt into my mortgage?

It depends on your circumstances. While monthly payments may be lower, you'll pay more interest over the mortgage term. It converts unsecured debt to secured debt against your home. A broker can help you weigh the pros and cons for your specific situation.

How much can I consolidate into my mortgage?

This depends on your equity, income, and the lender's criteria. Most lenders cap debt consolidation at around 75-85% LTV. You'll need sufficient equity in your home and evidence that consolidation will improve your financial position.

Will debt consolidation affect my credit score?

Initially, the remortgage application creates a hard credit check. However, if consolidation helps you manage payments better and clear debts, your credit score typically improves over time as you demonstrate consistent repayment.

Can I consolidate debt with bad credit?

Yes, specialist lenders offer debt consolidation remortgages for people with adverse credit. You may need more equity and face higher interest rates, but options exist. A specialist broker can identify suitable lenders.

What debts can I consolidate into a mortgage?

You can typically consolidate credit cards, personal loans, car finance, store cards, and other unsecured debts. Some lenders also accept outstanding tax bills or second charges. Each lender has specific criteria about which debts they'll consolidate.

Are there alternatives to debt consolidation remortgage?

Yes, alternatives include 0% balance transfer cards, personal loans, debt management plans, or simply increasing mortgage payments while paying off debts separately. The best option depends on your debt amount, interest rates, and timeline.

Quick Answer

How Does Debt Consolidation Remortgage Work?

Last reviewed: December 2025

Reviewed by Jay Sabine – CeMAP Qualified – 29 years experience

A debt consolidation remortgage releases equity from your home to pay off existing debts, converting multiple payments into one lower monthly payment.

When you remortgage for debt consolidation, you borrow more than your current mortgage balance and use the extra funds to clear other debts. For example, if your home is worth £300,000 with a £150,000 mortgage and £30,000 in debts, you could remortgage to £180,000 and use £30,000 to clear your debts. Your monthly payment is typically lower because mortgage rates are lower than credit card rates and the term is longer. However, you'll pay more total interest over time because the debt is spread over 15-25 years instead of 3-5 years.

Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing debts against your home. Your Home Finance Ltd is authorised and regulated by the Financial Conduct Authority (FCA 989177).

Key Points

1Release equity from your home to pay off unsecured debts
2Typically lower monthly payments than multiple debt payments
3Convert unsecured debt to secured debt against your property
4Pay more interest overall due to longer repayment term
5Various lender options from high street to specialist providers
6Expert broker advice helps find the right solution

Eligibility Criteria

Sufficient equity in your property (typically 15-25%+)
Affordable repayments under lender stress tests
Evidence consolidation will improve your finances
Debts eligible for consolidation (varies by lender)
Acceptable credit history (specialists accept adverse credit)

Typical Timeframe

A debt consolidation remortgage typically takes 4-8 weeks from application to completion. Once funds are released, your broker or solicitor arranges payment to creditors. Most debts are cleared within 24-48 hours of completion.

Next Steps

1List all your debts with balances, interest rates, and monthly payments
2Get an estimate of your property value and current mortgage balance
3Calculate your total monthly debt payments vs potential mortgage payment
4Speak to a specialist broker to compare lender options
5Consider whether consolidation genuinely improves your situation

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How Does Debt Consolidation Remortgage Work?

Key Points

Eligibility Criteria

Typical Timeframe

Next Steps

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